Supply chains are more complex (Gunasekaran et al. 2008) and are becoming more prone to disruptions with increasing environmental uncertainties (Wagner, Bode 2008). In this context, firms are forced to contemplate on strategies and capabilities that can address these growing uncertainties. Thus today's supply chain has to respond proactively to these environmental conditions. Hence innovation in supply chains becomes a dire necessity not only to respond proactively to disruptions and uncertainties; but also to gain a competitive advantage in the market. Possibly, this may be the reason for identifying the most innovative organization by ACSCMP (American Council of Supply Chain Management Professionals) and rewarding the same with their "Supply Chain innovation Award". Arlbjorn, Haas and Munksgaard (2011) noted in this regard "... among the nominees have been prestigious organizations such as the U.S. Air Force, Motorola, Kellogg's, and Blockbuster Inc. The list of award winners includes companies like Intel, Cisco Systems Inc., and Hewlett-Packard. The winner is selected out of 45-50 submissions each year, based upon criteria related to the degree of innovativeness, impact on overall supply chain, and sustainability in results (revenue, cost savings, etc.)".
However, supply chain innovation is a must therefore for the following reasons: (a) for gaining competitive edge in the market (b) for managing the different types of risks prevailing in the supply chain (Wagner, Bode 2006) and (c) for meeting proactively the different forms of uncertainties in the adjoining environment. But for developing innovative supply chains, firms must ascertain its various logistics capabilities and align them in an appropriate manner. As logistics are an essential part of supply chain (Mentzer et al. 2004); firms cannot develop an innovative supply chain without integrating the dominant logistics capabilities viz. demand management interface capability, supply management interface capability, information management capability and coordination capability (Mentzer et al. 2004; Esper et al. 2007; Gligor, Holcomb 2012). Hence the current investigation attempts to address the growing influence of each of the above logistics capabilities on supply chain innovation in an empirical framework. Accordingly, the objectives of the current investigation are as follows:
